Bitcoin price chart has made a decisive breakout and is likely to pick up momentum as it moves up. The sentiment remains bullish in Bitcoin as institutional investors ditch fiat currencies and opt to invest in gold and cryptocurrencies. Legendary investor Warren Buffet has sold bank stocks and has bought about $563 million worth of shares in the gold miner Barrick Gold, according to the latest regulatory filing. Although the total amount of purchase is very small compared to Berkshire’s overall portfolio, this is the first time ever that Buffett has purchased a gold stock.
CRYPTO MARKET ANALYSIS
Buffett has been a huge gold critic because he said that betting on gold was a trade against America. However, the latest change in strategy shows that the billionaire is not confident in fiat currencies, hence, has sought safety in gold.
Max Keiser, the founder of Heisenberg Capital, believes that Buffett’s investment in Gold is likely to attract greater allocation by the fund managers. Currently, the “global $100 trillion fund management biz is less than 1% invested in Gold.” If the allocation increases to 5% assets under management, it implies that gold will rise to $5,000. Keiser anticipates fund managers to invest 1% of their portfolio in BTC, which can push Bitcoin’s price to $50,000.
Jason Williams, co-founder and partner at hedge fund Morgan Creek Digital, believes that the young managers in Berkshire are likely to invest in Bitcoin in the future. If this happens, it will be a huge positive.
BITCOIN PRICE CHART – HOW TO TRADE BTC/USD
Bitcoin price chart broke above the $12,134.29 resistance on August 17, which completed the bullish ascending triangle pattern and triggered the trade suggested in the previous analysis. This bullish setup now has a target objective of $13,868.44.
Bitcoin price chart trend remains strong with both moving averages sloping up and the RSI close to the overbought territory. However, it is unlikely to be a straight dash to the target because the bears will try to stall the up move at $13,000.
Therefore, traders who have purchased after the breakout above $12,134.29 can trail their initial stop-loss to $11,500. The stops should be trailed higher as the Bitcoin price chart continues to move northwards.
After every breakout, the bears attempt to fake it. This usually results in a retest of the breakout level, which in this case is $12,134.29. If the bitcoin price chart slips and sustains below the breakout level, it increases the possibility of a failed breakout.
Conversely, if the bitcoin price chart rebounds off the breakout level, then it becomes the new floor where the bulls are eager to buy.
On a break below $12,134.29, a drop to the 20-day EMA is possible. If this level also cracks, the trend will turn negative. Hence, the stop-loss has been suggested to be placed just below the 20-day EMA.
ETHEREUM PRICE CHART – HOW TO TRADE ETH/USD
Ethereum price chart broke above the $415 resistance on August 13 but the bulls are facing resistance at $447.50, which suggests some profit booking at higher levels.
However, the positive thing is that the bulls have not allowed the Ethereum price chart to slip below the breakout level of $415. If the price rebounds off this level, the bulls will once again attempt to resume the uptrend.
On the upside, the first target objective is $480 and if this resistance is crossed, the up move can extend to $515.
Conversely, if the Ethereum price chart dips and sustains below $415, a drop to the 20-day EMA is possible. If the pair rebounds off this level, it will indicate that the bulls are defending this support, which is a positive sign.
However, if the bears sink the Ethereum price chart below the 20-day EMA, it will suggest that the momentum has weakened. Hence, traders who had initiated long positions as recommended in the previous analysis can trail the stops higher to $390. As the Ethereum price chart moves up, the stops should be trailed higher to protect the paper profits.
XRP PRICE CHART – HOW TO TRADE XRP/USD
The bulls did not allow xrp price chart to dip below the 20-day EMA between August 11 to 13, which is a positive sign as it shows demand at lower levels. Currently, the buyers are attempting to sustain the xrp price chart above the $0.3262 resistance.
If they succeed, the xrp price chart pair is likely to start a new uptrend that has a target objective of $0.40. There is resistance at $0.34639 but that is likely to be crossed.
Therefore, traders who had purchased long positions as suggested in our previous analysis can hold their positions with the proposed stop-loss. If the pair sustains above $0.3262, the stops can be trailed higher to protect the paper profits.
Both moving averages are sloping higher and the RSI is in the overbought zone, suggesting advantage to the bulls.
This bullish view will be invalidated if the xrp price chart turns down from the current levels or the $0.34639 resistance and breaks below the 20-day EMA. Such a move will suggest a lack of buyers at higher levels.
BITCOIN CASH PRICE USD – HOW TO TRADE BCH/USD
Bitcoin Cash price USD broke above the downtrend line on August 16, which invalidated the developing descending triangle pattern. The failure of a bearish setup is a bullish sign.
Currently, the bulls are facing resistance at $326.73, however the upsloping moving averages and the RSI in the positive zone suggests that the path of least resistance is to the upside.
If the buyers can push the Bitcoin Cash price USD above this resistance, a move to the $338.49-$352.96 resistance zone is possible. The momentum is likely to pick up above this zone with a target objective of $410.
Contrary to this assumption, if the Bitcoin Cash price USD turns down from the current levels, it can drop to the 20-day EMA and below that to $280. If the Bitcoin Cash price USD rebounds off $280, a few days of range-bound action is likely but a break below this support will tilt the advantage in favour of the bears.
LINK USD PRICE – HOW TO TRADE LINK/USD
We had not expected Chainlink to rally above $17.42366 in our previous analysis, but the bulls had other plans. They propelled the price to $20 on August 16. However, vertical rallies rarely sustain because most usually witness waterfall declines.
The same was seen on August 17 when the LINK to USD pair plunged from an intraday high of $19.71 to an intraday low of $14.64, a fall of 25% in a day. The only positive thing was that the bulls purchased the lows, which helped the pair to recover by close (UTC time).
After the sharp rally of the past few days, the pair could consolidate for a few days. The trend will turn in favour of the bears if they can sink the price below the 20-day EMA. Below this support, the decline can extend to the 61.8% Fibonacci retracement level of $11.66936.
Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
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